Since Central Bank Digital Currencies have received such favor in the last few years, the eyes of the world are constantly watching to see which country will embrace digital currencies next. Some of the most notable ones include China and the Bahamas. Many believe that this is the next step in the adoption of cryptocurrencies as if the use of digital tokens is sanctioned by governments around the world, this acceptance and visibility will trickle down to privately issued cryptocurrency and will drive adoption. While only a handful of countries have begun actively developing their own cryptocurrencies, China’s launch of their own crypto soon will likely speed up the process.
Prominent individuals at the Bank of Japan (BOJ), Ministry of Finance (MOF), and Financial Services Agency (FSA) have begun holding meetings to determine whether or not Japan should look into their own digital currency and what the steps towards this will be.
Crypto and Japan
One of the major concerns among Japanese lawmakers about the potential risk of CBDC is how it will impact the world economy seeing as the US dollar is still the standard in terms of global trading. Japan has been very proactive in the embracing of blockchain technology in recent times many believe that its local economy will benefit from a digital token. However, like many other countries, Japan worries about certain issues such as money laundering, the use of crypto for crime and so on.
Back in January, a meeting was held to discuss the issue and attendees at this meeting included Ryozo Himino, FSA vice-minister for international affairs, Yoshiki Takeuchi, vice-minister of finance for international affairs, and Shinichi Uchida, BOJ executive director for international affairs. According to Bank of Japan Governor Haruhiko Kuroda, there is not a great demand for digital currency in Japan but nevertheless, one could be launched once regulatory issues have been taken care of.
“We are advancing research and study from the technical and legal perspectives so that we will be able to move in an appropriate way when there is a growing need,” he said.